A case of arbitrary dismissal in Saudi Arabia: How did the employee receive the highest compensation?

A case of arbitrary dismissal in Saudi Arabia: How did the employee receive the highest compensation?

Unfair dismissal cases are among the most common labor disputes in Saudi Arabia, due to some companies exceeding their legal authority when terminating employee contracts. In this high-profile case, an employee successfully obtained substantial compensation after his lawyer proved that the company had dismissed him without legitimate justification. This case set a precedent demonstrating how Article 77 of the Labor Law can be applied when the evidence supports the employee's position.

Case facts

The employee had worked for a private company for several years before receiving a sudden termination notice citing "poor performance." The company provided no prior reports or warnings to substantiate this claim, prompting the employee to hire a lawyer and file a lawsuit for wrongful termination.

Employee defense

The employee's lawyer highlighted a number of key points to prove abuse of power.

1. The absence of any official performance reports proving weak productivity
2. The company did not provide any prior written warning.
3. There are testimonials from colleagues stating that the employee's performance was good.
4. The company continued to assign the employee sensitive tasks a week before his dismissal.

Company defense

The company claimed that it had a “conviction” that the employee’s performance was poor, but it was unable to provide written evidence or periodic reports to support this claim.

The court's approach to ruling

The Labor Court based its decision on the statutory rules for terminating an employee's services, which rely on tangible evidence rather than personal convictions.

1. The court stressed that the decision must be based on documented factual evidence.
2. She stated that performance evaluations without documentation are not valid.
3. I relied on Article 77 to determine the value of the compensation.

The ruling issued

After reviewing the evidence, the court ruled in favor of the employee, granting him the following rights.

1. Financial compensation in accordance with Article 77 for wrongful dismissal
2. Full end-of-service bonus
3. Payment of allowances for unused annual leave
4. Pay the remaining wage until the last working day
5. Obliging the company to issue a certificate of experience

The final compensation amount was higher than expected due to the company's proven misconduct in the dismissal proceedings.

The importance of this case

This case became an important reference point in labor disputes because it illustrated the following:

1. An employer may not dismiss an employee without written evidence.
2. Periodic warnings and evaluations are considered essential to proving poor performance.
3. The possibility of an employee receiving substantial compensation in case of unfair dismissal
4. Article 77 grants the employee broad protection if the employer's authority is abused.

Summary

This case highlights the importance of balancing employee rights and employer authority. It underscores that termination must be based on documented legal grounds, and that a skilled lawyer can transform a simple case into a substantial compensation claim by knowing how to present evidence and refute the company's claims.